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    A Presentation On Ipo .: Submitted By: Bhupendra Khatri

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    Abhilash Gehlot
    An IPO (initial public offering) allows a private company to issue stock to the public for the first time. The presentation discusses the reasons for conducting an IPO, including raising capital for growth and providing liquidity to founders. It outlines the steps in the IPO process such as appointing underwriters and bankers, filing documents, and allocating shares to different classes of investors including retail and institutional buyers. IPO grading assesses the fundamentals of the offering using both qualitative and quantitative measures. Investors are advised to research the company and risks before investing.

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    A Presentation On Ipo .: Submitted By: Bhupendra Khatri

    Uploaded by

    Abhilash Gehlot
    26 views17 pages
    An IPO (initial public offering) allows a private company to issue stock to the public for the first time. The presentation discusses the reasons for conducting an IPO, including raising capital for growth and providing liquidity to founders. It outlines the steps in the IPO process such as appointing underwriters and bankers, filing documents, and allocating shares to different classes of investors including retail and institutional buyers. IPO grading assesses the fundamentals of the offering using both qualitative and quantitative measures. Investors are advised to research the company and risks before investing.

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    Seminar 03

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    An IPO (initial public offering) allows a private company to issue stock to the public for the first time. The presentation discusses the reasons for conducting an IPO, including raising capital for growth and providing liquidity to founders. It outlines the steps in the IPO process such as appointing underwriters and bankers, filing documents, and allocating shares to different classes of investors including retail and institutional buyers. IPO grading assesses the fundamentals of the offering using both qualitative and quantitative measures. Investors are advised to research the company and risks before investing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    26 views17 pages

    A Presentation On Ipo .: Submitted By: Bhupendra Khatri

    Uploaded by

    Abhilash Gehlot
    An IPO (initial public offering) allows a private company to issue stock to the public for the first time. The presentation discusses the reasons for conducting an IPO, including raising capital for growth and providing liquidity to founders. It outlines the steps in the IPO process such as appointing underwriters and bankers, filing documents, and allocating shares to different classes of investors including retail and institutional buyers. IPO grading assesses the fundamentals of the offering using both qualitative and quantitative measures. Investors are advised to research the company and risks before investing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    A Presentation On

    IPO .

    Submitted By:
    Bhupendra Khatri
    What is IPO???...
    when a company (called the issuer) issues common
    stock or shares to the public for the first time in
    Primary market.

    Capital can be raised by way of


    -Public Issue
    - Rights Issue
    - Private Placements.
    Why IPO is needed??
    • Desire to raise capital for a growing firm.

    • Create liquidity for founders and other


    shareholders.
    • Exposure and Prestidge.
    • Creating multiple Financial Opportunities.
    Steps in a Public Issue….
    Vetting of Prospectus by SEBI.
    -A draft prospectus is prepared giving out details of the
    Company, promoters background, Management,
    terms of the issue, project details, modes of financing,
    past financial performance, projected profitability and
    others.
    Appointment of Underwriters.
    shoulder the liability and subscribe to the shortfall in
    case the issue is under-subscribed.
    Commision-2.5% on the amt underwritten.
    Appointment Of Bankers
    - collecting agencies and process the funds procured
    during the public issue .
    Appointment of Registrars : Registrars process the
    application forms, tabulate the amounts collected
    during the issue and initiate the allotment
    procedures.
     Appointment of the brokers to the issue: Recognized
    members of the Stock exchanges are appointed as
    brokers to the issue for marketing the issue. They are
    eligible for a maximum brokerage of 1.5%.
     Filing of prospectus with the Registrar of Companies.
     Printing and dispatch of Application forms: The prospectus and
    application forms are printed and dispatched to all the
    merchant bankers, underwriters, brokers to the issue.
    Filing of the initial listing application: A letter is sent to the
    Stock exchanges where the issue is proposed to be listed giving
    the details and stating the intent ;of getting the shares listed on
    the Exchange. The initial listing application has to be sent with
    a fee of Rs. 7,500/-.
     Statutory announcement: the Issue start and close dates are
    published in major English ;dailies and vernacular newspapers.
    Four Classes Of Investors..
    Retail Ind Investors
    - limit of investing upto one lakh.
    - 35% shares are Allotted to RII

    High Networth Individuals.


    - investment of more than one lakh.
    Non Institutional bidders :
     Individual investors , NRI’s, Companies , trusts, etc. who bid for
    more than Rs 1 lakh are known as Non Institutional bidders.
    Non- Institutional bidders have an allocation of 15% of shares of
    the total issue size in Book build IPOs.
    Qualified Institutional Bidders (QIBs):
    Financial institutions , banks , FII’s and Mutual funds who are
    registered with SEBI are called QIB’s. They usually apply in very
    high quantities. QIBs are mostly representatives of small
    investors who invest through mutual funds, ULIP schemes of
    insurance companies and pension schemes . QIB have an
    allocation of 50% of shares of the total issue size in book build
    IPOs
    IPO Grading…
    IPO  grading  assesses  the  fundamentals  of  the
     Initial  Public  Offerings  (IPOs)  and  is  reflected  on
     a   fivepoint  point  scale  with  a  higher  score
     indicating  stronger  fundamentals  of  the  IPO
     issuing  firm.
    Done prior to Issue and it is onetime Assessment.
    Indepth Measuement of Qualititative and
    Quantitative Measurement.
    Who Does Grading….?
    The grading Agencies which are approved by SEBI..

    CARE-Credit Analysis and Research Ltd.


    CRISIL-Credit Rating Information ServicesOf India
    FITCH Ratings
    ICRA Ltd.
    The grading is assigned on a five point basis:-
    IPO grade 1 : Poor fundamentals
    IPO grade 2: Below Avg fundamentals
    IPO grade   3 : Average  fundamentals  
    IPO grade   4 : Aboveaverage  fundamentals  
    IPO grade  5:  Strong  fundamentals  
    Fundamentals….
    Business and Compititive Position.
    Financial Position and Prospects.
    Management Quality.
    Corporate Governance Practices
    Example… (4/5)
     The  grading  reflects  the  firm’s  position  as  the  largest  player  in
     the  mobile  valueadded  services  (VAS)  market  in  India….”  
     “The  grading  also  reflects  the  firm’s  ability  to  leverage  on  the
     unique  voice  recognition  capability…..and  its  ability  to  offer
     customer  contact  products  to  companies  by  virtue  of  having  a
     voice  channel  relationship  with  almost  al  telecom  operators.”  
     “The  grading  also  factors  in  the  management's  strong
     understanding  of  market  dynamics,  as  reflected  in  the
     company’s  consistent  track  record  in  product  innovation,  and
     proactiveness  in  setting  up  a  corporate  governance  system…,  as
     indicated  by  the  appointment  of  independent  directors.”  
      “The  firm  plans  to  reduce  its  dependence  on  the  Indian  market
     by  expanding  into  international  markets.   In  the  last  one  year
     the  company  has  made  two  acquisitions.
    Conclusion….
    Before Investing…
    Undersatnd the working Of IPO.
    Gather Knowledge.
    Investigate Before Investing.
    Know your Broker.
    Measure the risk Invovled.
    Invest at your Own Risk.
    Refrences…
     Books
    -How to Make Money in Stocks By William J. O'neil
    -Practical Speculation by Victor Niederhoffer and Laurel Kenner
    -Kothari , C.R Research methodology

     Magazines
    -Business Week
    -Business World
    -Business today

     Websites
    -www.relianceinsider.com
    -www.moneycontrol.com
    -www.reliancepower.com
    -www.ipoindia.com
    Thank You……..

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